Question

NO HANDWRITTEN ANSWERS PLEASE

Describe good recordkeeping practices and their benefits.

Answer 1

Good Record keeping Practices:

1. Records Should be prepared in order to the meet the rules and regulations of various legislations or Acts
2. The Books and Records which is prepared by an organisation should be formulated inline with the objective of business i.e It must be supported with System and Nature of the organisation.
3. The Records can be made available at any time to the eligible authority
4. The records should be kept at the safest place
5. In case of Online Database, the recovery database should be maintained in addition to the regular database and all books of accounts should be kept.
6. The records should not be disposed off unless otherwise legal duty is complied
7. The records should be audited for effectiveness, efficiency and Accuracy and Availability of records
8. Maintain the risk relating to failure of updating and non availability at the lower levels

Benefits of Good Record keeping Practices:

1. Help in compliance with legal or regulatory laws

2. Auditing of records ensure trustworthy to the company

3. Help in planning, analysing ,forecasting the financial statements

4. Contribute in effectiveness and efficiency of management

5.Help in generating meaningful reports such as risk analysis, achievements Market targets etc

6.Help in analysing the financial statements ,help in quick decisions

7.Meet the Legal and Regulatory reporting requirements

8.Help in accessing the data at any time.